Sold car payment Paypal

Saus007

I sold my car and was paid via Paypal. Three weeks later I was contacted to say that I had missold the car, despite it being service and road tested 3 days before sale and a full 12 months guarantee. Paypal deducted the money from my account as the purchaser paid with a Visa credit card under Section 75. I am now being told that I have to collect the car in 3 days by transporter 50 miles from my home. My car was totally roadworthy when sold and not misrepresented in the ad.

Saus007

12 months MOT not guarantee

cx6

As far as I know, the underlying card payment used to fund their Paypal account has no S75 or any protection when used this way - their 'protection' will be via the Paypal buyer protection only.

You could try and clarify exactly what was used to refund

Saus007

They purchased using a Visa credit card.  Paypal said they sympathised, but the finding was apparently Visas. Apparently they are protected under Sales of Goods Act 1979?????  I was not given the opportunity to provide evidence that the car had just been serviced and was road tested, nor contacted by Visa

Grumpy_chap

According to this article, S75 does not "flow" through PayPal:
https://www.moneysavingexpert.com/credit-cards/PayPal-Section75/

soolin

cx6 said:

As far as I know, the underlying card payment used to fund their Paypal account has no S75 or any protection when used this way - their 'protection' will be via the Paypal buyer protection only.

You could try and clarify exactly what was used to refund

Some banks will push a refund some won't , as a buyer it is never worth relying on but as a seller it is something to be mindful of.

OP, firstly I am assuming this was a private sale and you are not a trader, as you have discovered taking paypal for a car is a very bad idea and never recommended, not even by paypal! You gave the buyer more rights than they would have otherwise been entitled to . You are going to struggle to defend the chargeback, paypal won't particularly assist although I would strongly suggest you take an afternoon of and spend it on the phone to paypal trying to get them to at least allow you to try and defend the claim. If that fails you will need to look into legal routes to recover money from the buyer.

If you had taken cash for the car then buyer would not have been able to try this- instead their only route would have been via small claims and you would then have been given ample opportunity to defend any claim- and as a private seller you would have had quite a lot of the law on your side assuming that the reason for rejection was considered false or unreasonable.

Saus007

Yes this was a private sale and we realise we were naive! Can you please advise as they now have the car and the money and are demanding collection of the car by Friday.  It will cost £150 by recovery vehicle.  If we collect presumably we get change of ownership documents back in to my daughter;s name.  Once we have the car back I'm guessing that there is no point going to the no claims court?

cx6

But you said they didn't purchase the car using a Visa card - you said they paid you by Paypal and thus must have used their Paypal account to pay you

The fact that they funded their Paypal account using visa is irrelevant.

Saus007

They paid with Paypal. Paypal told us that as they paid Paypal with a credit card that the decision was made by the credit card company, therefore Paypal refunded the money, deducting it from my daughter's account

cx6

The Sale of Goods Act 1979 has been largely superseded by the Consumer Right Act, but in any case neither apply to private individuals.

Saus007

So why did Paypal take the money out of my daughter's account.  The car was not missold, yet apparently is now unroadworthy